India's passion for gold knows no limits. In spite of the continuous restrictive measures taken by the government, the country always ranks in a top position in gold demand.
What are the latest gold news brought by India?
The demand for gold in India continues at a steady pace always ranking among the top ten – or better said, top two. The Indian life and culture is strongly linked to this precious metal – a key factor which boosts consumption and import.
According to the official data, at the end of 2014 nearly 39 tons of gold were imported to India and at the beginning of 2015, the official figure was 7 tons. It is no surprise: by the results of 2014 India was a world leader of gold consumption. Experts forecast the annual import of gold will reach 1,000 tons this year.
However this high volume of gold import started to create a market imbalance. The Indian Government's response was to introduce restrictive measures to lower import, a strategy with little or no result since the population did not stop buying gold. These restrictive measures just brought about to an increase of smuggling. Roughly estimated, in 2013 and 2014 the amount of illegally imported gold was around 200 tons.
To restore the trade balance, the authorities plan to restart gold mining activities in old deposits, as reported by The Guardian. According to experts' estimates, those deposits contain gold worth about 4 billion US dollars.
The Indian government will give 80 licenses for gold mining in these mines. According to historians, the gold deposits were actively exploited in the 19th century and were closed in the 21st century as they were no longer profitable.However, they still contain gold, and this can help to restore the trade balance as well as satisfy the demand for gold.
Read useful information about gold and the opportunities of buying it on the official website: www.globalintergold.com
